Carabao-Based Enterprise Development: The Philippine ... · Carabao-Based Enterprise Development:...

Carabao-Based Enterprise Development:The Philippine Experience

L. C. CRUZNATIONAL ACADEMY OF SCIENCE AND TECHNOLOGY

International Conference on CBED, 26-27 Oct 2017, PCC, Munoz, Nueva Ecija

OUTLINE

Background

Carabaos in the Philippine SettingChanging Swamp buffalo population

Economic Contributions of water buffaloes

Carabao-Based Enterprise Development

“ Putting the basics”

“ Kick-start the Market”“Expanding the Market”

Concluding statement


2,504,000 more

447,000 2,504,00

18,000 447,000

2,000 18,000

Less 2,000

Not Available

Water Buffaloes – world population

ATLAS OF WORLD BUFFALO POPULATION

Source: FAO, 2004 International Conference on CBED, 26-27 Oct 2017, PCC, Munoz, Nueva Ecija

world pop. = 199.7 M (FAO, 2015)pop in Asia = 97%swamp type= SEA

Distribution of poor livestock keepers


buffaloes and smallholders are linked


swamp buffaloes and rice farming are linked


Farm mechanisation

displaces the draft carabaos

Even the labor-intensive farm

income-generatingactivities such as rice

planting and harvesting are

displaced by farm machineries

CountryYear

1960 1970 1980 1990 2000 2013

Indonesia 2.8 2.8 2.4 3.3 2.4 1.4

Malaysia 0.3 0.3 0.2 0.2 0.1 0.1

Philippines 3.4 4.4 2.8 2.7 3.0 2.9

Thailand 4.9 5.7 5.6 5.0 1.7 1.2

Selected SEA Countries with declining swamp buffalo population (million), 1960-2013

Source: FAO, 2015


SWOT of and to PCC: A Retrospective

PCC created


Distribution of Carabaos in the Philippines

SOURCEMEAT,‘000 ton %

MILK,‘000 ton %

Carabao 144.68 34.85 14.20 52.30

Cattle 270.42 65.15 12.91 47.70

TOTAL 415.10 100.00 27.15 100.00

Domestic Meat and Milk Production from Cattle and Buffalo, Philippines, 2016


Carabao is the symbol of Philippine Agriculture


Office of the Secretary

Department of Agriculture

Philippine Agriculture is

essentially crop dominant, carabao

is but an input, just as is seed and

fertiliser;income is essentially from crops;

income is also seasonal


Policy/policy reforms related to

carabao-based enterprise

major policy/policy reforms

related to carabao-based

enterprise worth the review


Policy Reforms

1

Slaughter Banaims to prevent slaughter of

carabaos to make work animals available for

agriculture; legal to slaughter female carabaos after 11

years old and male carabaos after 7 years old; abolition of

the slaughter ban in 1985 permitted raising of buffalo

for meat purposes


Policy Reforms

2

Open Domestic Market

to Indian Buffalo meataims to reduce extraction rate from

domestic carabao population; if not

implemented the domestic carabao

population will be extinct in a period of

ten years


BUFFALO POPULATION, SLAUGHTER AND MEAT IMPORTATION, PHILIPPINES, 1997-2016

YEAR POPULATION,hd Slaughtered, M hd

% of population

BUFFALO MEAT IMPORTATION

VOLUME, kgLive animal

Equivalent, hd

1997 2,987,780 228,614 7.58 30,733,625 173,636

2000 3,024,400 267,060 8.83 36,395,226 205,622

2005 3,326,830 265,345 7.97 62,418,781 352,648

2010 3,270,410 218,208 6.67 43,146,025 243,762

2015 2,855,000 219,062 7.67 44,388,540 250,782

2016 2,877,000 30,903,126

Average 243,644 7.84 49,002,132 283,684

Total 4,654,334 4,937,969

the volume of import is more than the domestic slaughter volume!


Policy Reforms

3

Infusion of dairy

buffalo geneticsaims to introduce dairy buffalo

genetics as early as 1917-1957;

resumed in bigger number after the

establishment of the PCC in 1993;

the breed include Murrah, Nili Ravi,

Bulgarian Murrah, Brazillian Murrah

and the Italian Mediterranean

buffalo


Year Source Breed

No. (hd)

male female total

1917 India Murrah 57

1918 India Nili-Rav 85

1947 India Murrah 7 43 50

1947 India Murrah 1 21 22

1950-56 India Murrah 108 554 662

1994 USA Am-Murrah 70 154 224

1995-99 Bulgaria Bul-Murrah 216 2926 3142

2010 Brazil Murrah 11 2027 2038

2013 Italy Italian Mediterranean 1025 1025

Infusion of Live Riverine Buffaloes to Philippines


Recorded transport of riverine frozen semen to

the Philippines

Year Origin Breed # Straw/dose

1981 Pakistan Nili-Rav 1000






1995 Bulgaria Bulgarian Murah 13,000

2013 Italy Italian Mediterranean 5000


Policy Reforms

4

Creation of

Carabao research

CommodityDOST-PCARRD created a separate research

team on Carabao Commodity; this allowed in-depth research on crossing swamp buffalo

with thee riverine breed assisted by UNDP/FAO (1982-1992)

3 times more milk

2 times growth rate

Dou le far ers’ i o e


Policy Reforms

5

Establishment of

the Philippine

Carabao Center

Created by R.A. 7307:

“Philippine Carabao Act of 1992”


hy ill go er e t support the development of carabao, a symbol

of backward agriculture in the era

of oder izatio ?

he a e de elop a machine that feeds on

grass to produce milk or

feed on rice straw and rice

ra to produ e eat?

Question at the Phil Congress 1993, initial budget deliberation of PCC

PCC National Headquarters and Gene Pool


Regional Centers:

Luzon = 5Visayas = 4

Mindanao = 4


Regional Centers carry out

field extension activities in

concert with the Local

Govermenr Units ( LGUs)

Carabao Development program is more than the

carabao, it is about human, income and general

well being of smallholders


Carabao Development Program (CDP)

Carabao-Based Enterprise Development (CBED)

Matrix of the Carabao Sector Value Chain

PRE-FARMGATE

IN-FARM POST-FARM GATE

Production ProductPost

production/Processing

Market and marketing

Input

Policies ( regulation/tariff/taxes) Feeds Transport Transport Transport

Credit system Labor Collection Processing Facilities Advertising/ Info

Environment Vet Products/MOOE Technologies Technologies Technologies

Socio-Economic Systems Technologies Storage Storage Distribution

Human Resources Semen/Bull Fund/Money Fund/Money Storage

R, D and E Fund/Money R, D and E R, D and E Fund/money

R, D and E R, D and E

Players

Banks/Funding Istitutions Animal Raisers Traders Butcher Whosellers

Regulatory agencies Feed Suppliers/Input providers Milk collector Trader Retailers

Universities/Training Centers Veterinarian Testing Lab Processors ( for meat and milk) Tranporters

Research Centers/ Agencies AI Techinician Extensionist Storage Person Storage Person

Policy Makers(Legislators, LGUs) Extensionist Scientists/Reseachers Scientists/Reseachers Consumers

Development Agencies Scientists/Reseachers Scientists/Reseachers

END TARGET OF PLAYERS

COMPETITIVENESS, PROFITABILITY, SUSTAINABILITY






TARIFF ON IMPORTED MILK

COUNTRY TARIFF (%)

PHIL WTO 18

Philippine 3

Philippine AANZ 0

India 35

Thailand 20

Japan 21

China 20


enterprise environ 1

• Volume of total import in LME = 1.79 B liters (growth is +1.63%/yr)

• Import is 84% Powdered Milk

(growth is - 3.6%/yr)

• Average Annual Import

=US$450.00

• Value of local Industry

= P75B

RTD2%(growth is 1.48%/yr)

(growth is 13.8 %/yr)

Domestic Milk and Dairy Products MarketPhilippines, 2016

Domestic Production is 1.1% of total supply; growth is 4.85%/yr

Competitive area is only 16% of

total supply (P 3.6Billion)



Self sufficiency (%), milk consumption (kg ME/caput) Selected Countries, 2013

COUNTRY SELF SUFFICIENCY, %

MILK CONSUMPTION (KG ME/CAPUT)

Australia 127 328

New Zealand 855 593

China 81 31

India 101 123

Indonesia 49 13

Japan 77 77

Korea 60 68

Malaysia 8 28

Philippines 1 13

Taiwan 31 50

Thailand 69 24

Vietnam 33 15



YEAR HUMAN POPULATION (MILLION) URBAN POPULATION (MILLION)

1980 47.30 37.5

1990 61.90 43.0

2016 102.20 44.8

2025 116.10 46.1

2050 148.20 59.6

HUMAN POPULATION (MILLION) URBAN POPULATION (PERCENT)



✓ Establish four DAIRY/BEEF ZONES

linked with the urban markets

- Metro Manila grid

- Cebu grid

- Cagayan de Oro grid

- Davao grid


Establishing ground for Genetic ImprovementGene Pools

Indigenous breedsRiverine breeds

Reproductive Biotech LabsET, IVM/IVF, OPU, ICSI, SCNT

Genetic Evaluation SystemBIUP, MAS

Cryobanking of AnGRSemen, Oocytes, Embryo, Cells/Tissue, DNA

Superior Germplasm UtilizationAI, Bull Loan

Support to Business Process Research

Extension services

Cooperatives

Credit system

Collection Centers

Marketing assistance

Institutionalization of Carabao Development


Swamp (S) 100 % x Murrah (M) 100%

F1 SM (50:50)

SM x M (25 : 75)

SMM x M (12.5 : 87.5)

SMMM x M (6.25 : 93.75)

Backcrossing to the 4th Generation


Providing the basicspublic actions to allow poor livestock

producers to have secure and

adequate access to basic production

inputs;a) genetics ( live animals and frozen semen)b) technology

c) risk coping mechanism


GENETIC IMPROVEMENT

✓ Establish Gene Pool of Murrah (Dairy)

✓ Establish gene pool of Indigenous Water Buffalo

✓ Establish gene bank (semen, embryos, somatic cells)


GENETIC IMPROVEMENT (Utilization)

✓ Massive AI in cooperation with

- LGUs

- Village-based private technician

( with PCC conducting training of AI tech,

processing/distribution of high genetic

semen, technical assistance)

✓ Massive bull loan (dairy breed

bulls) in cooperation with

LGUs, FAs & coops


Enhancing dairy/meat based enterprises

R E P R O D U C T I V E B I O T E C H N I Q U E S

1. Artificial Insemination

a). Cryopreservation of semen(allow expanded usage of superior males and for indefinite period)

b). Estrus synchronization(enable breeding many females at pre-determined time)

c). Sperm sexing – (predetermined sex)

2. Embryo Technologiesa). Superovulation and Embryo Transfer (goat & cattle) for faster

multiplication of superior stocks

b). Cryopreservation of oocytes, IVM/IVF & OPU (dairy cattle& dairy buffalo)

For production of purebred stocks (oocytes from US Holstein Freiseinand oocytes of Buffaloes from India

3. AnGR Cryobanking (genetic diversity & conservation)


DNA Marker Assisted Selection significantly shorter the time to select best animals

DNA-based diagnostics for FMD, mastitis, etc. (to reduce risks of diseases

For Imported Genetics

For Export of Product

DNA-based screening for genetic defectsBLAD in cattle (poor reproduction)PPS for swine (poor quality pork)SCRAPIE for goat (high mortality)

DNA-based traceability

DNA-Based Technologies


FROZEN SEMEN PRODUCTION AND DISTRIBUTION


From Artificial Insemination150,000 to 350,000 services/year

From Bull Loan1,000 bulls on loan and new 250 bulls

every year

2.9 M Total Carabao

Population

AI techs target is 2000



Kick-start the Marketpublic actions to allow poor livestock

producers to exploit market opportunities;

a) training on milking, milk handling

b) training on processing

c) credit on milk collection equipment

d) support to milk collection centres

e) support to value adding (milka krem)


carabeef




Distribution of Carabao-based dairy coops

National Impact Zone = 74 coops

Regional Impact zone = 190 coops

Milk producers

and

milk collectors

and

processors



variety of buffalo derived products



variety

of

products

,

packagin

g and

brands


Milka Krem was

established to link

the smallholder

producers to

commercial market

that demand quality

and safety, good

packaging,

sustainability of

supply, among

others

the scheme is to pay smallholder producers added price on

top of the farm gate price right away (derived from the value

adding activities)


buffalo meat -derived

processed products

a new

entrepreneur

with focus on

feed base

supply,

contracting

smallholder

farmers to

plant corn for

silage for dairy

buffaloes

Theme Institution/Entity Date Area of Collaboration

Genetics

Govt of India 1917 to 1956 Live Animals, Murrah (854 hd at various years)

1982 to 1985 Frozen Semen, Murrah (3000 doses)

Govt of Pakistan 1981 to 1987 Frozen Semen of Nili Ravi (3000 doses)

FAO-UNDP 1982 to 1992 Research on Crossbreeding between swamp x riverime

FAO 1994 Risk assessment on importation of live animals from India

Govt of Bulgaria 1995 to 1999 Live Animal Importation, Bulgarian Murrah (3142 hd various years)

Govt of Brazil 2010 Live Animal Importation, Murrah Breed (2038 hd)

Govt of Italy 2013Live Animal Imporation. (1200 hd, Mediterranean breed; 4000 straw of frozen semen)

Summary of International collaborations related to transformation of swamp

buffaloes from draft to milk and meat in the Philippines.


55

Theme Institution/Entity Date Area of Collaboration

System Development and Utilization of Genetics

Japanese Govt thru JICA 2000 to 2005 Genetic Improvement, AI improvement, Semen Processing

Australian Govt thru ACIAR

1999 to 2004Genetic Improvement focused on Animal ID, recording system and data analysis

Korean Govt thru KOICA 2010 to 2012Cryobanking of AnGR, DNA based biotechnology, Semen Processing

US Govt thru its PL480 Program

2010 to 2013Research and Development, Biotechnology Laboratories, Human Resource Development

Taiwan Livestock Research Institute

2008 to dateDNA-based technologies, Screening of Genetic Defects, Cryobanking

USDA 2012Human Resource Development focused on Cryobanking of AnGR

International Buffalo Genome Consortium

2011 to date DNA-based MAS, Buffalo Genome

Enterprise Development

Japanese Govt thru it 2KR fund

2010 to 2013Dairy Product Processing, Establishment of Milk Collection Scheme for smallholders

Korean Govt thru KOICA and KAPE

2010 to dateProduct Development, Product Standard, Product Traceability

Summary of International collaborations related to transformation of swamp

buffaloes from draft to milk and meat in the Philippines.


Expanding the Marketlong-term public actions that encourage

and support the sustainable production of

high quality and competitive products in a

crowded market: a) continuing research on animal production tech

b) research on improving feed base

c) continuing genetic improvement program

d) addressing quality standards

e) strengthening producers cooperatives

f) certification and grading

g) environmental protection

h)strengthening institutions



competitiveness

profitabilitysustainabilit

y

Funding Agencies


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unfinished homework

Basic to the carabao-based enterprise development (milk and meat) is creating the critical production base, appearing to be the current major limitation. The challenge to achieve this is

considerable considering the slow rate of reproduction and the time needed to genetically upgrade the existing population to achieve acceptable level of productivity.

Bold Government support is needed to entice private partners to invest in herd-

build up and enterprise development. Dedicated livestock credit window with relatively low interest rate and a national milk feeding program are

essential push and pull factors.

The Philippine Carabao Center should seize the opportunity to take the lead in increasing its internal and partners’ (essentially the LGUs) capacities in

developing human resources attuned to the requirements of the enterprise, both in

research and in extension

Serious efforts should be channelled to increasing per capita consumption among young through the school milk feeding program. This is the future market of domestic fresh milk. This is benefitting the dairy

sector by way of expanding the market and at the same time creating a better and healthy generation


unfinished homework



Bold Government support is needed to entice private partners to invest in herd-build up and enterprise development. Dedicated livestock credit window with relatively low interest rate and a national milk feeding

program are essential push and pull factors.







unfinished homework












unfinished homework












Take Home Message

➢There are enough compelling reasons on the need to harness the huge existing swampbuffalo population to address socio-economic concerns of rural farming communities in mostof South East Asia

➢There are enough scientific data and sufficient field experience to indicate that crossing andbackcrossing swamp buffaloes with riverine breeds is feasible

➢For wide-scale and sustainable crossbreeding and backcrossing, it is essential to set-upneeded institutional mechanism; Legislation of national Policy

➢Research and Development to improve productivity, and Support to enterprise developmentaimed at improving market access by smallholders is critical for sustained growth anddevelopment

➢International collaborations in the areas of germplasm and technology sharings will hastenthe envisaged development


THANK YOU!


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